VANCOUVER (NEWS1130) – You’ve likely noticed it over the past week or so — gas prices are dropping and one analyst explains this downward trend is expected to continue for a while.
Michael Ervin says things should only get cheaper as we inch closer to the Labour Day Long Weekend in September when supply and demand is a little more balanced.
“When demand for gasoline goes down, North American wholesale prices tend to decline and dealers are pretty quick to pass along those declining wholesale prices in the form of lower gasoline prices.”
He says we could see prices go back to about the $1.30 mark, but it depends on what happens to the crude market. “Beyond that [Labour Day] prices are going to be dictated by global events influencing crude prices as they’ve been relatively stable for quite sometime.”
The average price around the Lower Mainland today is about $1.47 — that’s a couple of cents higher than the same time last year and well above the average across the country, in part because of the gas taxes we pay in BC.